RTTNews - Wednesday, Deputy Governor of the Bank of England Charles Bean reportedly said the central bank chief could write to the chancellor seeking permission to increase the size of the asset purchase scheme beyond GBP 150 billion if needed.
According to a Liverpool Daily Post report, while speaking at an Institute of Directors meeting, Bean said the governor could write to the chancellor Alistair Darling saying the monetary policy committee would like to do more than the authorized GBP 150 billion worth of asset purchases. It would be up to the chancellor whether he was happy to do that, he said.
The policymaker is on a week-long tour of the U.K. to explain the central bank's unconventional measures.
Last week, the BoE restrained itself from raising the asset purchase scheme size from its current GBP 125 billion to the authorized GBP 150 billion. The central bank said it would review the scale of the program again at its August meeting.
Bean told the Scotsman newspaper, the government should not have too much of a problem selling its debt once the quantitative easing measures came to an end.
Bean was not concerned about inflation and expects it to stay above 1%. In his interview to the Liverpool Daily Post, Bean said, We are quite a long way from a deflationary situation.
Elsewhere, he told the BBC, When all this money goes back, I think inflation could really pick up and that's something that I'm not sure many businesses are ready for.
The official data released Tuesday showed that annual inflation dropped below the central bank's 2% target for the first time since September 2007. The annual inflation rate stood at 1.8% in June.
Earlier, Bean said in an interview to the Yorkshire Post that there are obvious uncertainties linked to the central bank's GBP 125 billion asset purchase scheme and it will take at least nine months for its effect to be fully felt.
For comments and feedback: contact email@example.com